Loans • Reducing-balance EMI
Personal Loan EMI Calculator
Estimate monthly EMI, total interest and total repayment before comparing unsecured personal loan offers. Expand the schedule to see how the balance may reduce.
Enter loan assumptions
View amortisation schedule
How to use it
- Enter the amount you actually need to borrow.
- Use the annual rate stated in the offer or key facts statement.
- Enter the repayment tenure in complete months.
- Review EMI, total interest and total repayment.
- Open the schedule to understand principal and interest over time.
EMI formula
EMI = P × r × (1 + r)n ÷ ((1 + r)n − 1)
P is principal, r is annual rate divided by 12 and 100, and n is months. For 0%, EMI is P ÷ n. The schedule applies interest to the opening monthly balance. Currency values are rounded for display.
Worked Indian example
A ₹5,00,000 personal loan at 12% annually for 60 months produces:
| Monthly EMI | ₹11,122 |
|---|---|
| Total interest | ₹1,67,333 |
| Total repayment | ₹6,67,333 |
Fees can raise the real cost even when the rate and EMI look attractive. Compare the amount credited to your account with every mandatory charge.
How to interpret the result
EMI is the expected monthly installment under a fixed-rate reducing-balance model. Total interest shows the cost from interest alone. Total repayment excludes fees and other charges.
Common mistakes
- Borrowing the maximum offered rather than the amount needed.
- Choosing a long tenure only for a smaller EMI.
- Ignoring processing fees and optional add-ons.
- Taking another loan before checking existing EMI burden.
Practical borrowing checks
- Keep emergency savings after paying the EMI.
- Compare the key facts statement from multiple lenders.
- Check fixed versus floating rate wording.
- Read foreclosure and part-payment conditions.
- Avoid using new debt for routine monthly spending.
Related calculators and guides
Frequently asked questions
How is EMI calculated?
Using a reducing-balance annuity formula.
Are processing fees included?
No.
Does longer tenure reduce EMI?
Usually, but it can increase total interest.
Is this a loan offer?
No.
Can I enter 0%?
Yes.
What is an amortisation schedule?
A month-by-month principal, interest and balance table.
Can prepayment reduce interest?
Potentially, subject to lender terms and charges.
Should I compare only EMI?
No. Compare total cost, fees, rules and affordability.
Educational disclaimer
This calculator is for general education, not a loan offer, approval decision or personalized financial advice. Confirm the lender's key facts statement and agreement before borrowing.